The Indian real estate industry has undergone a significant transformation in the recent past. Urbanization has accelerated all over the country. People belonging to rural areas in India have increasingly begun moving to bigger cities even if it meant availing home loans to purchase a property.
The smart cities initiative by the Government of India aims to improve the quality of life for Indian citizens and is a commendable step towards overall growth and development. Smart cities aim to provide better infrastructure in a sustainable environment through the use of ‘smart’ technology. As more such cities come up, it is expected to see some significant changes in the Indian real estate industry as well.
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Expected impact of smart cities on the Indian real estate industry:
Expert opinions suggest smart cities will have a multi-faceted effect on the real estate sector in the following ways:
- Relocation of people from rural areas
The core objective of smart cities is to provide a comfortable and optimal way of life to Indian citizens. With this in mind, more people are expected to relocate to smart cities from rural areas for better career opportunities and an improved lifestyle. Consequently, there will be a high demand for residential real estate in smart cities. It can be assumed that people from rural areas are checking their home loan eligibility, while some may have already applied for housing loans to make this dream a reality.
- Enhanced private-public partnerships
The huge capital required to build smart cities will see stronger partnerships between the public and private sectors. An added advantage of such collaborations will be the efficient delivery of services and utilities to people residing in smart cities. This is why it can be assumed that a lot of people are beginning to use a home loan EMI calculator to ascertain the EMI that they will have to pay towards a home loan. After all, people are well aware of the numerous advantages of residing in a smart city.
- Better infrastructure
A smart city offers better infrastructure, including commercial and residential spaces that are driven by technology. This is the prime reason why people don’t mind a little monetary assistance through housing finance options so they can move to a smart city of their choice. Eventually, better infrastructure equates to a better standard of living.
These days with a large number of finance companies willing to provide loans at attractive home loan interest rates, the options for a homebuyer are wider than ever.
- Increased demand for commercial real estate
As more people move to smart cities, job opportunities are also bound to rise. Many multinational firms are already planning to expand their presence in smart cities. There will be a huge demand for office spaces, while commercial real estate developers can be expected to have their hands full with several projects.
The government’s mission of building 100 smart cities has already been launched with work beginning on the 20 cities that were selected for the first round of development. As more smart cities come up, the Indian real estate industry will definitely transform for the better.
Additional Read: Want to Own a Home? Check Out How to Apply for Home Loan
If you are looking to relocate to a smart city and want a home loan from Tata Capital to invest in a property, use the EMI calculator for home loan to work out your home loan repayments.